Ensure Your Life Insurance Meets Your Needs

Life insurance is a cornerstone of any sound financial plan, providing peace of mind that your loved ones will be protected in the event of the unexpected. But deciding on the right amount of coverage can feel daunting. It’s not just about a number—it’s about aligning protection with your family’s unique needs, goals, and responsibilities.

 

This became very real for me recently. Between welcoming our twin boys, looking for a new home, and, taking on a mortgage, my husband and I knew it was time to revisit our life insurance coverage. We had more people depending on us and bigger commitments to protect. Increasing our policy gave us comfort knowing that, should something happen, our family’s financial stability would remain intact.

 

Here are a few areas to consider when evaluating your own coverage:

Assess Your Financial Commitments

Start by looking at both your current and future obligations—mortgage payments, car loans, childcare costs, education planning, and everyday living expenses. For us, the new mortgage was a big factor. I wanted to know that if I wasn’t here, my family could stay in our home without financial stress.

Estimate Income Replacement Needs

A common guideline is to carry coverage equal to 10–15 times your annual income. Another rule of thumb is a $1 million term policy. But those are just starting points. Think about how long your family would need financial support and what specific expenses you’d want your policy to cover. With twins, for example, we had to think not only about the next few years but also about longer-term needs like future education costs.

Account for Savings and Employer Benefits

While many people have some coverage through their employer, these policies are usually limited—often just one or two times your salary. That’s helpful, but rarely enough on its own. Consider these policies as a supplement to, rather than a substitute for, your personal life insurance.

Plan for Life Changes

Life is dynamic, and so are your insurance needs. Milestones like marriage, buying a home, welcoming children, or preparing for retirement should prompt a fresh look at your policy. What felt sufficient five years ago may not be enough today. Just as we adjusted ours after expanding our family, it’s worth asking: does my coverage still match my life?

Seek Professional Guidance

Life insurance can be complex, and the right policy depends on your circumstances. Working with an advisor helps ensure you’re not underinsured—or overpaying for coverage you don’t need. An experienced professional can tailor recommendations to your goals, family needs, and financial picture.

Life insurance isn’t about dwelling on worst-case scenarios—it’s about creating security for the people who matter most. For me, updating our coverage felt like one more way to love and protect my family.

If you haven’t reviewed your policy in a while, consider taking time to evaluate whether your coverage truly matches your commitments and goals. That simple step can provide both confidence and peace of mind.